In this July 27, 2011 photo, the sun shines over a Range Resources well site in Washington, Pa. The company is one of many drilling into the Marcellus Shale layer deep underground and "fracking" the area to release natural gas. (AP Photo/Keith Srakocic)
Range Resources expects liquefied natural gas exports along with growing global gas demand to help the company boost production from around 1 billion cubic feet of gas equivalent to 3 Bcfe per day by 2018.
Jeff Ventura, chief executive of Range Resources, told the Enercom Oil & Gas conference in Denver today that the 20% to 25% growth in production and reserves the company has sustained in recent years should also lead to the company being cash flow positive in 2016.
Key to achieving the production target will be the installation of new gas processing plants and pipeline takeaway capacity.
Ventura expressed little doubt that it will happen, citing demand for LNG exports as well as from expansion in petrochemical plants, power generation, and increasing requirements from the manufacturing and transportation sectors.
Ventura said Range is already producing around 712 MMcfe per day from just 9% of Range’s acreage in south-west Pennsylvania, where much delineation of the Marcellus shale play has taken place.
Extracting ethane and propane is also adding about $100 million a year to Range’s cash flow, Ventura said.
Range is producing around 50,000 bpd of natural gas liquids, making it the largest such producer in Appalachia.
Ventura indicated there will be growing demand for exports of natural gas liquids as well, citing shipments of propane to South America over the last three years and a deal to send ethane to Norway in the second half of 2015.